BCL offer for Panguna not sound

panguna mine pit

Sebastian Hakalits | Post Courier | March 06, 2017

THE Autonomous Bougainville Government should not accept the K1 billion projected offer by Bougainville Copper Limited to them if the mine is fully operational by 2020, says Francis Hurahura of Arawa.

He said the ABG should counter this offer by asking BCL to get a percentage based on the value of every shipment.

He suggested ABG request 10 per cent of the value of every shipment which would mean a fairer deal and based on price movements as well.

“We need to know what production and export target BCL is forecasting and this has to be based on various minerals that is deposited at the Panguna mine and we must remember that BCL never revealed to Bougainvillean’s that gold was present and was one of the major deposits up until today, but the people only knew that copper was being mined,” Mr Hurahura said.

“The feasibility and environmental studies must be conducted by an independent body.”

Mr Hurahura said Bougainville has petroleum engineers, mining engineers and so on and therefore ‘we must engage our own professionals to get well informed advice and all this must not be rushed adding that the projected date of 2020 to begin mine operation is unwise.’

He said ABG was given 36 per cent share and landowners 17 per cent with no real value and this was a “Catch 22 Offer” and “now they are saying, you invite me I will operate the mine and then you will see value of your shares.”

“We should not fall for this.”

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4 Comments

Filed under Financial returns, Papua New Guinea

4 responses to “BCL offer for Panguna not sound

  1. peter suru

    Mr. Hakalits views appear to be sound to avoid future complications with the same company which had caused so many lives to be lost in the island.

    What about the environmental issues, especially the pollution and contamination of the water ways and its environs? Please look at this issue thoroughly and come up with sound and workable long lasting environmental protective measures before BCL is allowed to mine.

    Chief John Momis should be more careful this time than before when he was a member of the National Parliament. Was he concerned with this issue then?

    Chief Momis should be more careful this time?

  2. There seems to be a controversial issue about the Rio Tinto shares and how they have been divided.
    For example, ABG was given 36 per cent share and landowners 17 per cent with no real value and this was a “Catch 22 Offer”.

    Yet the son Peter Quodling, the son of the late Mining Director of BCL, Paul Quodling, insists that the Autonomous Bougainville Government (ABG) has 36.4% and the Papua New Guinea Government (PNG) has the same 36.4%

    Peter Quodling states on the Bougainville News website, that “there is a glaring technical inaccuracy” and that, “The Panguna Landowners do not own 17% at all”.

    Interesting to note also according to Peter Quodling, “in fact, in the top 20 shareholders (a matter of public record) the lion’s share are institutional investors (JP Morgan, Citicorp, HSBC, ABN-AMRO), with the only significant European holding being a german chap, with a shareholding of about 1.1M shares (or 0.29% of the total)”.

    As stated by the Bougainville Freedom Movement (BFM),

    Mr O’Neill told parliament on Wednesday his government — which already has a 19 per cent share of BCL — would transfer the 17.4 per cent stake from Rio to Bougainville to “help to alleviate some of the legacy issues of the past”.”

    “With this transfer, the people of Bougainville will own a combined shareholding of 53.8% of BCL,” O’Neill stated.

    Perhaps Peter Quodling could advise where it is set in concrete that both the ABG and PNG have 36% of equal shares?

    Also, it seems ridiculous that Rio Tinto have “gifted” its shares to Bougainville and PNG when the Panguna mine has been shut since 1988, therefore non-existent.

    See
    https://bougainvillenews.com/2017/03/01/bougainville-mining-news-bcl-proposes-a-re-opening-mine-start-up-by-2020/#comments

  3. Peter Poro

    I seem to remember that the gold recovery at Panguna was published in it’s anual reports and that it was around 0.1 grams per tonne of ore treated. I may be wrong here but I am sure that I remember reading the published returns for gold. To say that these were hidden by BCL is not true at all.

  4. Paul. Popuna

    Do not let this greedy mining giant to come and exploit us again. Lives were lost, divide and rule tactic was used and history will repeat itself. Al Bougainvilleans, please stand together and support or rather push for the 10 per cent of the value of every shipment which would mean a fairer deal and based on price movements as well. PNG Government seems to be critically fooled into believing the greedy mining giants and their share holders.

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